No investment market can escape the 80/20 rule, and the same is true for the cryptocurrency world. Although the cryptocurrency world is a place full of miracles, it is also a wild place where barbaric growth occurs.
After all, only a few people make money from cryptocurrency trading, and most investors are the ones who are harvested. There are many factors that lead to losing money in cryptocurrency trading, such as: chasing ups and downs, not having a complete investment plan, and lack of knowledge... In summary, it is nothing more than the following points.
Short-term thinking is serious
What we are talking about here is short-term thinking, not real short-term or swing trading; in short, we should look at the long term. What everyone discusses is how much the price has risen today, how much it has fallen tomorrow, rather than how the coin will be in half a year or a year. You can see which of the so-called "masters" who have achieved financial freedom in the current cryptocurrency circle made money in three to five days. They all relied on time to persevere;
Of course, this does not mean that we should ignore the short-term rise and fall and just hold the currency blindly. Instead, we should allocate positions reasonably, with long-term as the main focus and short-term and medium-term as the supplement. We should also follow the short-term trend changes that we can see clearly.
Buy high and sell low
Chasing the rise and selling the fall is a mistake that almost every cryptocurrency investor will make. When they see a coin soaring and the whole world is discussing it, they buy it and are reluctant to sell it when they lose 10% or 20% after buying it. They hold on to it and wait for the day when they can get out of the trap. When it continues to fall and loses 50% or even 60% or 70%, they think the coin is not good and sell it directly to the bottom. Then they repeat this step again and again.
Honestly speaking, there is no good solution to the problem of chasing highs and selling lows. One can only rely on paying tuition fees. Only when the tuition fees are paid and the pain is felt will one learn his lesson and slowly change this habit.
Lack of awareness
Many people don’t think before investing, and just believe what others say. If a big V says this coin is good today, they buy it immediately! If a rumor says that coin will rise tomorrow, they buy it too... As for what is good about this coin and why it will rise, they have no idea at all; others speculate on coins based on their own cognition, but you speculate on coins based on their cognition.
It would be unjust if this brainless investment method did not lose money. We can use other people's cognition as a reference when investing, but before that we must establish our own cognition;
Too impetuous
Impetuousness seems to have become the norm in the cryptocurrency circle. Many people enter this market with the mentality of getting rich overnight, but they are not prepared to go back to zero, let alone the ability to get rich overnight! After buying a coin, they hope that it will rise after buying it, double in three days, and increase 10 times in half a month... If the coin they bought does not rise in half a month, or even loses money, they will start to find all kinds of excuses for themselves, and then curse all kinds of things, scolding the project party for not managing the market value, scolding the dog dealer for crashing the market, and blaming the big V for inaccurate predictions...
I have never seen an investment market as impetuous as the cryptocurrency market. The reason why most people in the cryptocurrency market are too impetuous is that they have seen too many stories of people getting rich overnight in the cryptocurrency market, and there are coins that increase tenfold or a hundredfold around them almost every time period. They subconsciously regard the cryptocurrency market as a 100% sure win casino, thinking that as long as they buy coins, they can make money, instead of seeing it as a real financial market. Bloodthirstiness is the essence of the financial market.
do not study
Previously, a media outlet conducted a survey on investors’ understanding of digital currencies. Among the 778 digital asset investors randomly selected, less than 10% could quickly and accurately describe “what is Bitcoin?” and only 17 people could accurately explain “what is blockchain technology?”
Although the statistics of this data are small, they are enough to illustrate the current situation of the overall investors in the cryptocurrency circle. How can you have faith if you don’t even know what you are investing in? Without faith, how can you hold on to the lowest-priced chips or the best currencies?
Learning is an eternal wealth. Only by continuous learning can we avoid being harvested.
Lack of sound investment philosophy
Most people do not have a complete investment plan before investing, and they just follow their feelings. This kind of investment method that relies entirely on intuition will definitely lead to a high probability of losing money if you encounter unexpected situations. Only by making a corresponding investment plan before investing, such as: how many currencies to buy? When to buy? How to allocate positions? Should you stop loss or cover the position after buying? Should you reduce your position in batches or continue to hold after making a profit? ····
Only by summarizing a set of investment strategies that suit us can we deal with various situations and remain calm whether the market goes up or down. This will at least keep our mentality invincible and prevent us from making wrong choices.
People who do value investing believe in faith and look at investment prospects. They often analyze the pros and cons of the industry, study policy dynamics, predict future trends, and make investments based on the overall environment. Such people are often arrogant and knowledgeable. #VanEck提交首个SolanaETF #币安合约锦标赛 #以太坊ETF批准预期 #Mt.Gox将启动偿还计划
